NPC: Hurdles Impede Value-Based Contracts

from tHEORetically Speaking: The HealthEconomics.Com Blog at on June 27, 2017 at 04:07PM

Although the National Pharmaceutical Council (NPC) recognizes the benefits of value-based contracts, it says there are “existing barriers” which hinder both the development and implementation of such contracts.

Value-based contracting, according to the NPC, has seen relatively low activity in an environment which shows strong interest on behalf of payers and biopharmaceutical manufacturers.

National Pharmaceutical Company logoOne of the primary concerns with the contracts is the lack of “infrastructure” to monitor an outcomes-based deal, NPC says. Payers may be unable to keep an eye on a patients’ pharmaceutical usage.

“Manufacturers are reluctant to accept financial consequences when they can’t control how a drug is prescribed or used,” the NPC says.

But there are certain benefits, according to the council.

“Manufacturers said they can use value-based contracts to differentiate and demonstrate the effectiveness of their product versus their competitors, which can assist payers in making formulary decisions,” says the NPC.

Click here to read the full report on the National Pharmaceutical Council’s website.